Robert Abela and Alex Borg appear to be engaged in a dangerous competition to outbid each other with policies that undermine Malta’s public finances while favouring the wealthy, ADPD – the Green Party said in a statement.
“Instead of competing in populist promises that risk bankrupting the country, political leaders should focus on responsible economic management and fairness for all. Malta deserves a tax system that supports pensioners in need while ensuring that those with high incomes contribute their fair share,” the party said on Sunday.
ADPD-The Green Party’s Chairperson Sandra Gauci referred to the government’s tax exemption on pensions of up to €37,000. She said that this disproportionately benefits those with very high pensions, including former ministers, former MEPs and individuals who accumulated substantial private pension schemes during their careers. This is regressive and an insult to workers who struggle to achieve minimum pension rights.
“At present, workers in Malta start paying income tax at rates that can reach 25% on income slightly above €16,000, and 35% on income over and above €60,000. Yet the government is proposing that pension income up to around €37,000 be taxed at zero. This means that individuals with large pensions could pay no tax at all, while workers earning significantly less continue to pay income tax.”
“Instead of promising to correct this imbalance, the Nationalist Party has now gone even further. Alex Borg has proposed that all pensioners should be exempt from tax on all their income, up to €37,000, regardless of the source of their income and the capital accumulated. Those with hundreds of thousands of Euros of accumulated capital will be favoured.”
“This proposal is extremely insulting and regressive. It would create two completely different categories of people in society. Those who work and pay income tax according to their income, and those with the same or even higher income who pay absolutely nothing simply because they are pensioners. This is neither fair nor socially just,” the party said.
It said that workers would once again be penalised, while individuals with very high incomes would be exempt from paying any type of tax on income. “Such policies also shift the burden onto younger and future generations, who will have to sustain public finances that are increasingly weakened by irresponsible tax giveaways. PL and PN favour the rich over workers. It is pertinent to underline that with all these tax giveaways the national debt has surpassed the 11 billion Euro mark. It is future generations which will have to foot the bill.”
ADPD – The Green Party said that it believes that social justice requires a fair and progressive tax system where everyone contributes according to their ability, regardless of whether income comes from work, pensions or investments. ADPD-The Green Party said it will do its best, at all times, to correct the imbalances which Labour is creating and PN acquiescing to.